Disclosure of Tax Havens and Offshoring Act Would Codify Emerging Trend Toward Tax Transparency
Washington, D.C. — House lawmakers unveiled legislation on Thursday that would require multinational corporations to publicly disclose key tax and financial information on a country-by-country basis. Sponsored by Representatives Cindy Axne (D-IA), Lloyd Doggett (D-TX), Stephen Lynch (D-MA), and Jennifer Wexton (D-VA), the Disclosure of Tax Havens and Offshoring Act would direct the U.S. Securities and Exchange Commission (SEC) to mandate public disclosure of country-by-country financial reports — including profits, taxes, employees, and tangible assets — by corporations with annual revenues over a certain threshold. A Senate companion bill, S.1609, is sponsored by Senators Chris Van Hollen (D-MD), Tammy Duckworth (D-IL), Amy Klobuchar (D-MN), Tina Smith (D-MN), and Sheldon Whitehouse (D-RI).
The bill introduction follows the unveiling of the first global standard on public tax disclosure, published in December by the Global Reporting Initiative, which is likely to bring tax transparency to thousands of multinational corporations. Moreover, the chair of the Financial Accounting Standards Board announced his support last week for including public jurisdiction-by-jurisdiction tax disclosures in the Generally Accepted Accounting Principles (GAAP).
Clark Gascoigne, interim executive director of the Financial Accountability and Corporate Transparency (FACT) Coalition, issued the following statement:
“The Disclosure of Tax Havens and Offshoring Act would provide straightforward information about where multinational companies do business and pay taxes — codifying the emerging trend toward transparency. Shining a light on the offshore practices of corporations would help expose abusive tax-dodging schemes — better protecting taxpayers, informing policymakers, and safeguarding investors.”
Notes to Editors:
- Click here to read the press release from Rep. Axne’s office.
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